Chapter 02 Organization Strategy and Project Selection

Which of the following is NOT true about an organization's strategy?

Only top management must understand strategy.

A project selection process that is strongly linked to strategy results in

Better utilization of the organization's resources.

Which of the following questions does the organization's mission statement answer?

D. What do we want to become?

Which of the following is NOT one of the traditional components found in mission statements?

B. Profitability

Which of the following is NOT one of the characteristics of effective objectives?

C. Flexible

Which of the following is NOT true about organizational politics?

Project managers should not engage in organizational politics.

Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?

Sacred cow

Why do project managers need to understand their organization's mission and strategy?

So they can make appropriate decisions and adjustments and be effective project advocates

Project managers who understand the role that their project plays in accomplishing the organization's strategy will be inclined to do all of the following EXCEPT

Be able to focus on problems or solutions if the project is a low priority strategically.

All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT

Not enough projects within the portfolio to make a profit.

Which of the following problems refers to lack of understanding and consensus of organization strategy among top and middle-level managers? This also can result when top management formulates strategy and leaves implementation to functional managers.

Implementation gap

Which of the following is NOT true for strategic management?

It should be done once every few years just before developing the operating plan.

Which of the following is the correct order for the strategic management process?

C. Mission, strategies, objectives, projects

In order to formulate strategies that align with the mission some of the activities the organization will need to perform are

All of these should be considered when formulating strategies.

The assessment of the external and internal environments is called _______ analysis.

SWOT

Which of the following would be classified as an organizational external threat?

A. Slowing of the economy

Which of the following would be classified as an organizational opportunity?

C. Increasing product demand

Which of the following is NOT one of the requirements for successful implementation of strategies through projects?

Quality management

Which of the following is NOT a problem associated with the absence of a project portfolio system?

Lack of funding

Susie's department is implementing many projects. She finds herself starting and stopping work on one task to go and work on another task, and then return to the work on the original task. Susie is experiencing

Multitasking

Project selection criteria are typically classified as

Financial and nonfinancial.

The __________ financial model measures the current value of all cash inflows using management's minimum desired rate of return.

None of these

Projects are usually classified into all but one of the following categories. Which one is NOT one of the typical classifications?

Political necessity

One who endorses and lends political support for the completion of a specific project is known as the

Project sponsor.

A project screening matrix typically contains all of the following EXCEPT

Costs to complete each project.

Regardless of the criteria differences among different types of projects, typically the most important criterion for project selection is

the project's fit to the organization strategy.

Examples of nonfinancial criteria include all of the following EXCEPT

Calculating the time it will take to recover the project investment.

Which of the following is true of multiweighted scoring models?

All of these are true.

Which of the following is NOT true when managing a portfolio system?

It does not require a constant effort.

The following are responsibilities of the governance team when managing a portfolio system EXCEPT

Deciding how organizational resources are allocated among the different types of projects.

When a prioritization team is balancing projects, they consider all factors except for

leadership style.

When it comes to project prioritization, senior management is responsible for

all of the above.

When creating a selection model, it is important to

not use it as the final determination for project selection.

People within an organization working on multiple efforts concurrently is an indicator of

too many projects taken on at once.

Typically, a project sponsor is

instrumental in approving a project and key to support a project to its completion.

Project Priority Systems can resolve

all of the above.

An operational project is one that

can improve organizational performance.

A SWOT analysis provides the Project Manager with

identifiable strategic alternative and potential critical issues facing the organization.

The strategic activity that focuses on what needs to be accomplished is

analyze and formulate strategies.

The process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there" is ______________.

strategic management

________ change infrequently and may require revision only when the nature of the business changes or shifts.

Mission statements

________ translate the organization's strategy into specific, concrete, and measurable terms.

Objectives

How strategies will be realized, given available resources, is answered through __________.

implementation

High-ranking managers who endorse and lend political support for the completion of a specific project are known as project _________.

sponsors

A weighted scoring model typically uses several weighted selection criteria to evaluate project proposals. An example of this would be a(n) ____________.

project screening matrix

What the organization wants to become and the scope of the firm in terms of its product or service would be identified in the organization's ____________.

mission statement

In a SWOT analysis, good product quality, low debt, and an established supplier network are examples of internal ________.

strengths

In a SWOT analysis, strong competition, reduced product demand, and a maturing product life cycle are examples of external __________.

threats

The assessment of the internal and external environments is known as a(n) ________.

SWOT analysis

Strategy is implemented through ________.

projects

A project that a powerful, high-ranking official is advocating is often termed a(n) ___________.

sacred cow

Starting and stopping work on one task to go and work on another project, and then returning to work on the original task is known as ___________.

multitasking

The lack of understanding and consensus of organization strategy among top and middle-level managers is known as the __________.

implementation gap

The financial model that measures the time it will take to recover the project investment is the __________ model.

payback

The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of return is known as the _________ model.

net present value (npv)

In classifying the kinds of projects an organization has in its portfolio, projects that are typically those needed to meet regulatory conditions required to operate in a region are ___________ projects.

compliance (must do)

In classifying the kinds of projects an organization has in its portfolio, projects that are typically needed to support current operations are _________ projects.

operational

In classifying the kinds of projects an organization has in its portfolio, projects that directly support the organization's long-term mission are ________ projects.

strategic

When considering criteria used to select projects, capturing a larger market share or reducing the dependency on unreliable suppliers would both be examples of __________ criteria.

nonfinancial

In some cases organizations will use a(n) __________ to solicit ideas for projects when the knowledge requirements for the project are not available in the organization.

RFP (Request for Proposal)

A list of potential projects, several criteria, weights for those criteria, and criteria scores for those projects are all typically included on a(n) ___________ matrix.

project screening

__________ the portfolio system involves monitoring and adjusting selection criteria to reflect the strategic focus of the organization.

Managing

Project management historically has been preoccupied solely with the planning and execution of projects while strategy was under the purview of senior management.

TRUE

Intermittent scanning of the external environment is required when managing organization strategy.

FALSE

A written mission statement provides focus for decision making when shared by organizational managers and employees.

TRUE

Project managers should not engage in organizational politics.

FALSE

Organizational objectives set targets for all levels of the organization, not just for top management.

TRUE

Mission statements typically change frequently, responding to changes in the external environment.

FALSE

Strategy formulation ends with cascading objectives or projects assigned to lower divisions, departments, or individuals.

TRUE

If a proposed project does not meet one of the designated "must" objectives, it is immediately removed from consideration.

TRUE